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India: Global CEOs' Bright Spot in Q2
3 Aug
Summary
- India emerged as a key growth market for major global consumer firms in Q2.
- Despite inflation, resilient consumer demand was noted across various sectors.
- Several international companies plan continued investments in the Indian market.
India emerged as a significant growth driver for several of the world's largest consumer goods companies in the June quarter. Executives from firms such as Apple, Unilever, and Reckitt highlighted standout performances and resilient consumer demand, often surpassing expectations despite prevailing macroeconomic headwinds. These companies reported accelerated growth and are signaling continued investment, underscoring India's importance.
Apple, for instance, achieved record June-quarter revenue in India, with double-digit growth across its Mac computer business. FMCG multinationals like Unilever and L'Oréal also experienced faster growth, with Unilever's India business accelerating by 10%, leading its global performance. Global CEOs expressed strong confidence, with Unilever's CEO stating that the next decade belongs to India.
Reckitt's India business showed high single-digit growth, driven by brands like Dettol and Durex. Similarly, The Hershey Company and Mondelez International noted India as one of their strongest performers, with demand running ahead of plans. Mondelez expanded its outlet presence and is fast-tracking a second production line for its biscuit brand.
This optimism persists even as India faced retail inflation in May and June due to higher fuel prices and supply-chain disruptions. Companies have adjusted by raising prices to offset increased input costs. Additionally, fast-food chains like Yum! Brands and appliance makers such as AO Smith are experiencing strong momentum and rapid evolution in consumer preferences within the Indian market.
